Goldman is shifting its view on sharing its software. The company will start providing a new open source platform allowing clients to create customized investment strategies using its proprietary research and analytical tools. The first apps are an extension of Goldman's platform named Marquee. The apps are designed for money managers, pensions, hedge funds and other clients of the firm’s equities and fixed-income trading businesses,
Goldman will soon offer clients access to more of its in-house tools, such as high-powered databases that analyze markets and manage risk, according to the firm’s executives. Those proprietary systems have long been key elements enabling Goldman to sidestep market turmoil and ring up outsized profits in better conditions. Given direct access to these tools, Goldman clients could use the technology to build their own trading systems and potentially make purchases independent of the firm. But the firm’s executives believe the upside outweighs those concerns. Goldman is betting that its clients, such as hedge funds and other money managers, will use the individual applications, or apps, to develop strategies and then execute their trades with the firm. By deepening ties with those clients, Goldman hopes it will pick up other business from them as well.